Financial Aid

Withdraw Information

Return of Title IV Funds

The following rules govern the return of Title IV funds disbursed for a student who
completely withdraws from a term, payment period or period of enrollment. The Title
IV programs covered include federal grants and loans. Federal guidelines assume that
a student earns his or her aid based on the period of time he or she remains enrolled.
SPC determines the amount of Title IV grant or loan assistance that the student earned
as of the date of the student’s withdrawal.

During the first 60 percent of the enrollment period, a student earns Title IV funds
disbursed or that could have been disbursed in direct proportion to the length of
time he or she remains enrolled. The percentage of unearned Title IV aid is the complement
of the student’s earned aid percentage. Unearned Title IV funds must be returned to
the Federal Government; this is not applicable to federal work study. A student who
remains enrolled after the 60 percent point earns all of his or her disbursed aid
for the period. If earned Title IV funds exceed disbursed aid, additional funds may
be disbursed to the student in the form of a late disbursement. Additional disbursements
are not permitted if the amount of earned aid is less than the total Title IV funds
that were disbursed prior to the institution’s determination that the student withdrew.

Repayment of Unearned Aid

The unearned amount of Title IV aid to be returned is calculated by subtracting earned
aid from the amount of disbursed aid as of the date SPC determined the student withdrew.
The responsibility to repay unearned aid is shared by the institution and the student
in proportion to the aid each is assumed to possess. The institution’s share is allocated
among the Title IV programs in an order specified by statute before the student’s
share.

The institution’s share is the lesser of the total amount of unearned aid or the institutional
charges multiplied by the percentage of aid that was not earned. The student’s initial
share is the difference between the total unearned amount and the institution’s share.
Any remaining outstanding loans are repaid by the student according to the terms and
conditions of the student’s promissory notes. After the student’s share is allocated
among the Title IV programs, students owe any grant overpayments that exceed 50 percent
of the Title IV grant aid received. Students are not required to return grant overpayments
of $50 or less.

Repayments will be distributed to the appropriate Title IV, HEA programs in the following
order:

Federal Direct Unsubsidized Loan

Federal Direct Subsidized Loan

Federal Direct PLUS Loan

Federal Pell Grant

Federal SEOG Grant

Other Title IV assistance

Other state, private or institutional aid

Student

If the institution returns unearned to the Department of Education that was previously
disbursed to a student, the student then owes the unearned disbursement to the institution.
A hold is placed on the student’s records at SPC, and the account is turned over to
a collection agency if this balance is unpaid.

Time Frame for Students to Return Funds

The institution must return its share of unearned Title IV funds no later than 45
days after determining a student withdrew. Students return their share of unearned
aid attributable to loans under the terms and conditions of their promissory notes.
Students have 45 days to resolve grant overpayments in one of the following three
ways:

Repay the overpayment in full to the institution

Sign a repayment agreement with the institution

Sign a repayment agreement with the Department of Education

When overpayments are not resolved within 45 days from the date SPC sends notification
of the overpayments, students lose their financial aid eligibility at every institution
of higher education in the United States. If a student refuses to make payment or
payment arrangements for any Title IV program, SPC is required by law to report the
overpayment to the Department of Education.

Post-Withdrawal Disbursements of Aid

A student who earned more aid than was disbursed prior to withdrawal may be due a
post-withdrawal disbursement. A post-withdrawal disbursement, whether credited to
the student’s account or disbursed to the student or parent directly, must be made
from available grant funds before available loan funds. SPC may credit grant disbursements
toward unpaid institutional charges for the current year charges only. SPC will contact
a withdrawn student prior to making a post-withdrawal disbursement of loan funds.
SPC will explain the student’s obligation to repay the funds and confirm that the
loan funds are still required by the student. Students will be encouraged to cancel
the loan. SPC will document the student’s decision in his or her file.

Any portion of a post-withdrawal disbursement not credited to the student’s account
will be offered in writing or electronically as a cash disbursement to the student
within 30 days of the withdrawal date. The student has 14 calendar days to respond
to the Financial Aid Office. Upon receiving the response, SPC will make the disbursement
no later than 45 days from the date SPC determined that the student withdrew. SPC
will return the post-withdrawal disbursement to the Department of Education if no
response is received from the student, or parent in the case of a Parent PLUS Loan.
Funds will also be returned to the Department of Education if they are declined by
the student or parent, or if a response is not received within the 14 day timeframe.
If a student, or parent in the case of a PLUS loan, decides to receive a post-withdrawal
disbursement of loan funds, the student and/or parent is obligated to repay those
funds according to the loan terms. If a response to the post-withdrawal disbursement
eligibility notice is received after the 14 day timeframe, it is SPC’s decision as
to whether or not this disbursement will be made in accordance with federal regulations.

An eligible student who withdraws from SPC prior to completing his or her file should
check with the Financial Aid Office to determine if he or she qualifies for a post-withdrawal
disbursement.

Determination of Withdrawal Date

A student is considered to have withdrawn if the student does not complete all of
the days during the semester he or she was scheduled to complete. The withdrawal date
is the date the student began the institution’s withdrawal process, or officially
notified the institution of intent to withdraw orally or in writing. The withdrawal
date may also be the mid-point of the period for a student who leaves without notifying
the institution, or the last day of attendance or participation of the student’s class
given by the instructor. If not provided, the mid-point of the period will be used
as the withdrawal date. If a student leaves without notification because of circumstances
beyond the student’s control, the institution may determine a withdrawal date related
to these circumstances.

Written notification to the Admissions and Records Office is required in order for
the withdrawal request to be honored. Per federal regulations SPC will assume that
students who have all grades of F or combination grades of F, X and W unofficially
withdrew, and a Return of Title IV funds will be calculated. The withdrawal date for
grades of F and X will be the student’s last day of class attendance or participation
as reported by the instructor or the mid-point of the semester if that date is not
provided. Grades of W, which are initiated by the student, will carry the appropriate date
from the Admissions and Records Office that the Financial Aid Office will use. The
Financial Aid Office will use the latter date of students who have combinations of
F, X and W grades in the same semester.

Students will receive a statement from the Business Office detailing the amount that
the student owes the Business Office due to SPC returning unearned aid to the federal
program(s). A hold will be placed on the student records at SPC at this time. Students
should make payment arrangements with the Business Office to avoid being turned over
to a collection agency. If the student also owes the Financial Aid Office a portion
of unearned aid, then the student will receive a letter from the Financial Aid Office
with the amount due.

Payment Arrangements and Payments

Students may not register for SPC classes or receive an official transcript until
the Business Office debt has been paid in full. If a student also owes the Financial
Aid Office and wishes to make payment arrangements, he/she should contact the Financial
Aid Office and a repayment arrangement contract will be mailed to the student. If
a student is late on any payment with financial aid, SPC reserves the right to turn
the student’s account over to the U.S. Department of Education for collection. Students
who wish to make payment arrangements with the Business Office, should contact the
Business Office for further details to avoid being turned over to a collection agency.

Payments should be made in the form of a money order and be sent to the following
location(s):

South Plains College

South Plains College

Business Office

Financial Aid Office

1401 S. College Ave., Box A

1401 S. College Ave., Box B

Levelland, TX 79336

Levelland, TX 79336

(806) 894-9611, ext. 2400

(806) 894-9611, ext. 3800

Students whose Financial Aid debt has been turned over to the U.S. Department of Education
should contact the Department of Education at the following address:

South Plains College does not discriminate on the basis of race, color, national origin, sex, disability or age in its programs and activities. The following person has been designated to handle inquiries regarding the non-discrimination policies: Vice President for Student Affairs, South Plains College 1401 College Avenue, Box 5, Levelland, TX 79336, 806-894-9611